FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1999
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OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission file number 0-26461
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SNELLING TRAVEL, INC.
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(Exact name of registrant as specified in its charter)
Colorado 58-2368425
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
55 Pharr Road., No. A-207, Atlanta, Georgia 30305
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(Address of principal executive offices) (Zip Code)
(404) 841-0111
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(Registrant's telephone number, including area code)
N/A
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(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days. Yes No XX
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APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes
of Common Stock, as of the latest practicable date.
Class of Stock Amount Outstanding
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$.001 par value 1,525,000 shares outstanding
Common Stock at September 30, 1999
SNELLING TRAVEL, INC.
Index
Page
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Part I - FINANCIAL INFORMATION
Item 1. Financial Statements..........................1-6
Item 2. Management's Discussion and Analysis Or
Plan of Operation.............................7-8
Part II - OTHER INFORMATION....................................9
SIGNATURES....................................................10
ii
Snelling Travel, Inc.
(A Development Stage Company)
Balance Sheet
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Unaudited Audited
June December
30, 1999 31, 1998
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ASSETS
Cash $46,329 $51,008
Stock Subscriptions Receivable 0 1,500
- -----
TOTAL ASSETS 46,329 52,508
====== ======
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Current Liabilities:
Accounts Payable $8,302 $0
Advances Due to Related Parties 0 100
- ---
Total Current Liabilities 8,302 100
----- ---
TOTAL LIABILITIES 8,302 100
----- ---
SHAREHOLDERS' EQUITY
Preferred Stock, $.01 Par Value
Authorized 1,000,000 Shares
Issued And Outstanding 0 Shares. 0 0
Common Stock, $.001 Par Value
Authorized 10,000,000 Shares;
Issued And Outstanding 1,510,000 Shares 1,525 1,510
Common Stock Subscribed 0 15
Capital Paid In Excess Of
Par Value Of Common Stock 55,575 51,975
Deficit Accumulated During The Development Stage (19,073) (1,092)
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TOTAL SHAREHOLDERS' EQUITY 38,027 52,408
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $46,329 $52,508
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The Accompanying Notes Are An Integral Part Of These Unaudited Financial
Statements.
1
Snelling Travel, Inc.
(A Development Stage Company)
Statement Of Operations
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Unaudited Unaudited
Three Month Three Month
Interim Period Interim Period
Ended Ended
June June
30, 1999 30, 1998
-------- --------
Revenue $0 $0
-- --
Expenses:
Bank Charges 0 0
Office 12 0
Legal and Accounting 12,425 0
Rent 300 0
Salaries 1,500 0
Web Design 239 0
--- -
Total Expenses 14,476 0
------ -
Net Income (Loss) ($14,476) $0
======= ==
Basic Earnings (Loss) Per Share ($0.01) $0.00
===== =====
Weighted Average Common Shares
Outstanding 1,525,000 1,000,000
========= =========
The Accompanying Notes Are An Integral Part Of These Unaudited Financial
Statements.
2
Snelling Travel, Inc.
(A Development Stage Company)
Statement Of Operations
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Unaudited
Unaudited Unaudited December
Six Month Six Month 15, 1997
Interim Period Interim Period (Inception)
Ended Ended Through
June June June
30, 1999 30, 1998 30, 1999
-------- -------- --------
Revenue $0 $0 $0
-- -- --
Expenses:
Bank Charges 10 0 90
Office 12 0 24
Legal and Accounting 12,425 0 13,425
Rent 600 0 600
Salaries 3,000 0 3,000
Web Design 1,934 0 1,934
----- - -----
Total Expenses 17,981 0 19,073
------ - ------
Net Income (Loss) ($17,981) $0 ($19,073)
======= = =======
Basic Earnings (Loss) Per Share ($0.01) $0.00
===== =====
Weighted Average Common Shares
Outstanding 1,525,000 1,000,000
========= =========
The Accompanying Notes Are An Integral Part Of These Unaudited Financial
Statements.
3
Snelling Travel, Inc.
Unaudited Statement Of Shareholders' Equity
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(Deficit)
Accumulated
Number Of Common Additional During The
Common Shares Common Paid-In Development
Shares Subscribed Stock Capital Stage Total
------ ---------- ----- ------- ----- -----
Balance At December 15, 1997 0 0 $0 $0 $0 $0
December 17, 1997 Services
Valued at $.001 Per Share 1,000,000 1,000 1,000
Net Loss December 31, 1997 (1,000) (1,000)
--------- - ----- - ----- -----
Balance At December 31, 1997 1,000,000 0 1,000 0 (1,000) 0
Private Stock Offering:
December 15, 1998 for Cash @ $.10 Per Share 510,000 510 50,490 51,000
December 15, 1998 Subscribed @ $.10 Per Share 0 15,000 15 1,485 1,500
Net Loss December 31, 1998 (92) (92)
---------- ------ ------ ------- ------ -------
Balance At December 31, 1998 1,510,000 15,000 $1,525 $51,975 ($1,092) $52,408
Cash Received for Subscribed Shares 15,000 (15,000)
Rent and salaries contributed by officers 3,600 3,600
Net Loss June 30, 1999 (17,981) (17,981)
--------- ------ ------ ------- ------ ------
Balance At June 30, 1999 1,525,000 0 $1,525 $55,575 ($19,073) $38,027
========= = ====== ======= ======= =======
The Accompanying Notes Are An Integral Part Of These Unaudited Financial Statements.
4
Snelling Travel, Inc.
(A Development Stage Company)
Statement Of Cash Flows
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Unaudited
Unaudited Unaudited December
Six Month Six Month 15, 1997
Interim Period Interim Period (Inception)
Ended Ended Through
June June June
30, 1999 30, 1998 30, 1999
-------- -------- --------
Net (Loss) ($17,981) $0 ($19,073)
Adjustments To Reconcile Net Loss To Net
Cash Used In Operating Activities:
Stock Issued For Services 0 0 1,000
Rents and Salaries Contributed by Officers 3,600 0 3,600
Increase In Accounts Payable 8,302 0 8,302
----- - -----
Net Cash Flows Provided By (Used In)
Operations (6,079) 0 (6,171)
----- - -----
Cash Flows From Investing Activities:
Net Cash Flows Provided By
Investing Activities 0 0 0
- - -
Cash Flows From Financing Activities:
Advances Received From Shareholders 0 0 225
Payment of Shareholder Advance (100) 0 (225)
Issuance of Common Stock 1,500 0 52,500
----- - ------
Net Cash Flows Provided By
Financing Activities 1,400 0 52,500
----- - ------
Net Decrease In Cash (4,679) 0 46,329
Cash At Beginning Of Period 51,008 0 0
------ - -
Cash At End Of Period $46,329 $0 $46,329
======= == =======
Summary of non-cash investing and
financing activities:
Stock Issued for Services $0 $0 $1,000
== == ======
The Accompanying Notes Are An Integral Part Of These Unaudited Financial
Statements.
5
Snelling Travel, Inc.
Notes To Unaudited Financial Statements
For The Six Month Period Ended June 30, 1999
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Note 1 - Unaudited Financial Information
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The unaudited financial information included for the three month and six
month interim period ended June 30, 1999 were taken from the books and
records without audit. However, such information reflects all adjustments
(consisting only of normal recurring adjustments) which are in the opinion
of management, necessary to reflect properly the results of interim periods
presented. The results of operations for the six month period ended June
30, 1999 are not necessarily indicative of the results expected for the
fiscal year ended December 31, 1999.
Note 2 - Financial Statements
- -----------------------------
Management has elected to omit substantially all footnotes relating to the
condensed financial statements of the Company included in the report. For a
complete set of footnotes, reference is made to the Company's Report on
Form 10 and the financial statements included therein for the year ended
December 31, 1998 as filed with the Securities and Exchange Commission.
6
SNELLING TRAVEL, INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Introduction
Certain statements contained herein constitute "forward looking
statements" within the meaning of the Private Securities Litigation Reform
Act of 1995. Such forward looking statements include, without limitation,
statements regarding the Company's plan of business operations, anticipated
revenues and related expenditures. Factors that could cause actual results
to differ materially include, among others, the following: acceptability of
the Company's services in the retail market place, general economic
conditions, political and economical conditions abroad, competition in the
airline industry and the overall state of the travel industry. Most of
these factors are outside the control of the Company. Investors are
cautioned not to put undue reliance on forward looking statements. Except
as otherwise required by applicable securities statutes or regulations, the
Company disclaims any intent or obligation to update publicly these forward
looking statements, whether as a result of new information, future events
or otherwise.
Plan of Operation
At June 30, 1999, the Company remained in the development stage,
having no revenue from operations. The Company's business plan
contemplates design and implementation of sports and adventure travel to
individuals and groups. Revenues are anticipated to be generated through
fees paid by clients, which fees may include commissions, mark-ups or other
charges payable to the Company. As presently conceived, commissions and
other charges will be determined on a case-by-case basis, depending upon
such things as the cost of service, travel destination and relative demand
for the Company's services.
As of June 30, 1999 the Company continued efforts to implement its
business plan and generate revenues. Marketing is conducted through a site
maintained by the Company on the World Wide Web, as well as the personal
contacts of the Company's president. During the three month period ended
June 30, 1999, the Company was successful in placing banner advertisements
on Web sites maintained by third parties. Such advertising represents an
effort by the Company to obtain additional exposure for its services. The
Company's sole employee continues investigation of travel destinations and
accommodations in an effort to broaden the Company's programs. The Company
also makes various presentations to individuals and groups in an effort to
interest prospective clients.
Receipt of revenue by the Company is dependent on the success of these
and other marketing efforts conducted by the Company. There is no
assurance when, if ever, revenues will be received. However, management
believes that winter and fall are the most popular travel times for its
customers, and will increase marketing efforts to attract clients during
that time.
7
During the six month period ended June 30, 1999, the Company realized
a net loss of $17,981, or $.01 per share. Significant expenses include
legal and accounting fees associated with the preparation and filing of a
Registration Statement with the Securities and Exchange Commission, as well
as salaries to employees and expenses associated with the Company's Web
page. Salaries and rent accrued during the six month period ended June 30,
1999 in the amount of $3,600 have been donated by the Company's president.
Accordingly, those expenses represent non-cash expenses.
Expenses anticipated in the future include administrative expenses
similar to those incurred to date, as well as direct costs associated with
travel programs proposed to be implemented by the Company.
Liquidity and Capital Resources
At June 30, 1999, the Company had working capital of $38,027,
consisting of current assets of $46,329 and current liabilities of $8,302.
Current assets consisted entirely of cash, while current liabilities
consisted of accounts payable. The Company has no specific capital
requirements at this time other than payment of accounts payable and
general and administrative expenses. Management believes that the
Company's cash will be sufficient for the foreseeable future. Expenses
associated with travel programs proposed to be offered by the Company will
be paid in installments by customers in the form of deposits. Accordingly,
management does not believe the Company requires significant additional
cash.
During the six month period ended June 30, 1999, the Company's
operations used approximately $6,000 in cash. A majority of that amount
were expenses payable in connection with legal and accounting services
provided to the Company. Management does not anticipate such expenses will
be repeated in the future, and accordingly, cash used by operations should
decrease. However, any additional cash required for operations will be
sought from private debt or equity financing.
8
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
No report required.
Item 2. Changes in Securities and Use of Proceeds.
No report required.
Item 3. Defaults Upon Senior Securities.
No report required.
Item 4. Submission of Matters to a Vote of Security Holders.
No report required.
Item 5. Other Information.
No report required.
Item 6. Exhibits and Reports on Form 8-K.
No report required.
9
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly authorized.
SNELLING TRAVEL, INC.
Date: October 4, 1999 By: /s/ Rollins C. Snelling
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Rollins C. Snelling, Jr., President and
Treasurer
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